OpenAI has entered into a significant 20-year lease agreement with SoftBank subsidiary SB Energy for a new data center in Ohio, providing approximately 8 gigawatts of IT capacity. This project, known as the PORTS-Pike campus, is strategically located on part of a former U.S. Department of Energy uranium enrichment facility and will draw power from a 9.2-gigawatt gas plant. The total project could potentially cost over $500 billion, including the necessary chips.
Nvidia is providing crucial financial backing for this endeavor, committing up to $105 billion in credit support. This support is structured as a guarantee on the residual value of the finished data centers for the initial 4.25 gigawatts of IT capacity. If OpenAI were to default, SB Energy would first attempt to find a replacement tenant or sell the facilities, with Nvidia covering any remaining deficit up to the $105 billion cap. In return for this guarantee, Nvidia will become the exclusive chip supplier for this initial phase of the data center and is investing $1.5 billion directly into SB Energy.
Initially, Nvidia had reportedly aimed to backstop the entire project with around $250 billion, but this figure was reduced after a 5% stock drop and investor pressure. The final $105 billion guarantee covers asset value rather than the full lease. Nvidia CEO Jensen Huang emphasizes that land, power, and building shells are now the primary bottlenecks in AI infrastructure development. The first 800 megawatts of capacity are expected to become operational in 2028. This partnership also includes community benefits, with OpenAI adding $40 million to SB Energy's original $40 million fund, totaling $80 million, to support local priorities in Pike County, Ohio.
